October 9 - Denmark headquartered DSV Group has acquired US based UTi Worldwide in a deal worth USD1.35 billion.
HLPFI reported on December 4, 2014 that the Danish transport and logistics group tried to acquire its US rival, with both organisations confirming that exploratory conversations regarding this matter had taken place. Bloomberg reported, however, that the negotiations broke down after news broke of DSV's potential acquisition sent UTi's shares surging.
Shares in DSV grew by as much as 6.7 percent to a record 270.4 Danish Krone (USD41.07). UTi's stock dropped 66 percent in value since the breakdown of the previous deal talks.
However, the two organisations confirmed that an accord has now been struck. Kurt K. Larsen, chairman of the board at DSV, said: "It is a great pleasure for me to announce the first step towards the combination of UTi and DSV. We complement each other perfectly, both in terms of business activities and geography. Together, we will be even stronger and able to capitalise on business synergies as well as a greater global reach to the benefit of shareholders, customers and employees.
DSV offered a cash price of USD7.10 per ordinary share - a 50 percent premium on UTI's closing price on October 8, 2015. Danske Bank, ING and Nordea have committed to financing the transaction. The transaction is conditional on obtaining the approval of the shareholders of UTi at an extraordinary shareholders' meeting.
Roger MacFarlane, chairman of the board of UTi, noted: "We are operating in an industry where increasingly scale is critical. Joining forces with DSV delivers substantially greater client value and many future opportunities for our people while it is financially very attractive for our shareholders. As a result, the Board of Directors of UTi has unanimously approved the agreement with DSV and strongly recommends that our shareholders accept the offer."
www.go2uti.com
www.dsv.com
